Glowtronics-A Strategic Turnaround

Small & Medium Enterprises (SMEs) form the backbone of the Indian manufacturing sector and have become the engines of economic growth in India. SMEs in India constitute 95% of all industrial units, produce 40% of the value added gross industrial products, and employ 45% of the nation's total labor force. Their contribution to the employment generation in the Indian economy is to the tune of 60-70%. In addition, small business o enterprises play the pivotal role of introducing innovative products and services to the market. Most SMEs witness varied business challenges during their lifetime. The strategies adopted by them either have taken them to the heights of successes or pushed them to failures. Yet, many have shown the resilience to bounce back to take on the competitive challenges of the market and emerge victorious, Glowtronics India Pvt Ltd., (refcred to as Glowtronics, from here on) situated in Mysore is one of the few SMEs in the country that has seen the ups and downs of an SME and managed to create a niche for itself in the SME segment. The 3Ps (Purpose, Passion and Perseverance) that stand richly embedded in their organizational work culture helped the company to sail through difficult times and emerge stronger. Glowtronics started its operations with the manufacture of the electron gun that is used for the cathode tube used in televisions. Glowtronics began its organizational sojourn in 1986 when the consumer was in a television-buying spree attracted by Doordarshan (the state-owned all-in-one TV Channel) that made its telecast available in all parts of the country. This case study captures the trials and tribulations of Glowtronics from its inception to its metamorphosis as a dominant player in the electronicsmanufacturing field pioneering many first generation innovations. At one point of time, the company was in doldrums but came out of it unscathed; carving out strategies that enabled it to perfect the art of competitive advantage facilitated by sound strategies and corporate financial policies.